Technology

Expansionist dreams threaten ECB digital euro plan

17 Jan 2023

As the European Central Bank develops its own online currency, politicians want a big say. Hostility from some rubs against the ECB’s cautious enthusiasm. Yet if political forces push a digital euro to be more global than the ECB is ready for, it may weaken financial stability.

Capital Calls: BlackRock, Tim Cook’s pay

13 Jan 2023

Concise views on global finance: The asset manager edges closer to its Blackstone roots by expanding in private investments; compensation for Apple’s CEO re-enters Earth’s atmosphere.

Capital Calls: Prices down, jobs saved?

12 Jan 2023

Concise views on global finance: New data shows U.S. prices falling 0.1% in December, marking the largest drop since early 2020. With inflation in retreat, the Fed can focus more on keeping Americans employed.

India can credibly push digital currencies to talk

11 Jan 2023

The e-rupee will be a hard sell at home but it could slash costs of overseas transfers. As a receiver of $100 bln annual household remittances and champion of interoperable payments, New Delhi can use its G20 presidency to foster global cooperation to tap the compelling use case.

Microsoft’s AI bet: heads I win, tails I also win

10 Jan 2023

If the software giant’s mooted $10 bln investment in ChatGPT's maker goes well, it could reshape Microsoft’s business. If it flops, CEO Satya Nadella will have stopped a rival getting hold of a hot AI property. Creative financial structuring cuts Microsoft’s risk even further.

Capital Calls: McDonald’s ex-CEO fine

10 Jan 2023

Concise views on global finance: The Security and Exchange Commission’s decision to slap former fast food chain boss Stephen Easterbrook with a penalty is a convoluted way to the right outcome.

YouTube runs risky new play to capitalize on NFL

9 Jan 2023

Alphabet’s video service is paying some $14 bln over seven years to let fans watch nearly any game they want. The pricey Sunday Ticket package has been diluted, however. It would take 60% subscriber growth to break even, but user-generated clips give the deal a sporting chance.

Capital Calls: AstraZeneca

9 Jan 2023

Concise views on global finance: The drug giant is to pay up to $1.8 bln for U.S. group CinCor Pharma to beef up its kidney and heart businesses.

Jack Ma’s Ant is China tech’s tiniest bellwether

9 Jan 2023

The founder is ceding control of his fintech giant, sending shares of affiliate Alibaba up 7%. The move was expected, yet investors clearly see Ant's rehabilitation as symbolic. That may be misguided, but any excuse to reevaluate China’s beat-down internet sector will do.

Fitness firms’ regime: lots of brands, few assets

6 Jan 2023

Gym chains from boutiques like Barry’s to the no-frills Planet Fitness are reinventing how people get and stay in shape. Yet as the $100 bln fitness business faces competition, the fight for dollars has become much more bruising. The dominant firms are diversified and nimble.

China’s TikTok wins while U.S. dillydallies

6 Jan 2023

The social media app has stopped hiring people that would help appease U.S. regulators. Congress is slow – a reflection of Americans apathetic about sharing data. But impaling companies with taxes and tariffs happens regularly. As politicians delay, China tiptoes into homes.

Crypto bank run vindicates watchdogs’ vigilance

5 Jan 2023

Silvergate Capital, which takes deposits from digital-asset companies like FTX, had to raise funds and flog assets fast after customers pulled $8 bln. It’s a disaster for investors and the ambitions of CEO Alan Lane. For regulators who’ve kept crypto on a tight leash, it’s a win.

EU is stuck playing catch-up with Amazon and Apple

5 Jan 2023

Antitrust tsar Margrethe Vestager wrung concessions from the $880 bln e-commerce giant, while the iPhone maker could open to third-party app stores. That sounds like progress, but the giants could have other tricks up their sleeves. Enforcers will be left racing to keep up.

Capital Calls: Meta’s fine problem

4 Jan 2023

Concise views on global finance: The social networking giant was penalized nearly $800 million last year in a series of European charges over how it treated user data. While 2023 is young, Meta has just been fined half as much. It's just a start.

Starbucks will go grande on workforce-lite future

4 Jan 2023

The $120 bln latte purveyor is fighting off unions as workers seek better benefits and higher wages. In 2023, it will throw a few concessions. That will tide over employees long enough for it to streamline coffee-making. It’s a playbook for those looking to trim their workforce.

Disney’s next 100 years hinges on a metaverse

3 Jan 2023

A century ago, the media giant crafted theme parks that withstood decades of changing technology. It isn’t a huge leap from a real Disneyland to a virtual one that melds brands and streaming. Innovation is necessary, but for it, boss Bob Iger’s days need to be numbered.

Foxconn reinvents itself, and EV supply chains

3 Jan 2023

The Taiwanese giant plans to make electric vehicles, and the chips and batteries that go into them, for global automakers. That’s a twist on its business of churning out iPhones for Apple in China. As far as strategic pivots go, this one is ambitious and much needed.

“Lifetime value” is Silicon Valley’s next buzzword

28 Dec 2022

As the cost of recruiting customers rises, tech firms and investors are paying more attention to the revenue users bring in. It’s a welcome shift from breakneck growth. Yet as with previous favourites like “total addressable market” or “flywheel effect”, the idea may get garbled.

E-commerce will go viral on social media in 2023

27 Dec 2022

TikTok and YouTube are among those fighting for a piece of the estimated $46 bln shopping market that’s growing twice as fast as ads. It’s a sensible strategic move, but recession would dash some plans. Many products also won’t suit the apps and competition is expanding quickly.

Microsoft’s $69 bln deal runs on European time

21 Dec 2022

A U.S. effort to block the software developer’s Activision acquisition promises to be a long and uphill climb. Brussels and London, however, could extract concessions sooner. It’s an indication of how other jurisdictions backstop increasingly hardline American regulators.